Items such as market knowledge, effective advertising programs, fundraising capabilities and trained staff are NOT regarded as assets because they:
A) are monetary items;
B) cannot be measured;
C) are not controlled by the entity;
D) are too difficult to manage.

Question

Quizplus · Accepted Answer

Assets are resources that are controlled by the entity and are expected to provide future economic benefits. Market knowledge, effective advertising programs, fundraising capabilities and trained staff are not physical resources owned by the entity, and hence are not considered assets. Additionally, these items cannot be controlled by the entity, making it difficult to measure their value and manage them effectively.

Items Such as Market Knowledge, Effective Advertising Programs, Fundraising Capabilities